[Vigilanteman]

That would work if it would alone solve the problem. But my understanding is the Puerto Rico, like certain far left states, got into their fiscal mess not just by borrowing and issuing excess bonds but also by making promises such as public employee pensions which they could not keep.

Think about it. Default on the bonds with no way to resolve the rest of the problems and all they have done is shut off access to any new borrowing, not addressing root causes.

[Darth Reardon]

According to Sen Menendez, PR got into this mess because they weren’t being given enough of our money.

“Congress has to act immediately to fix the federal funding shortfalls”

[Jack Black]

Think about it. Default on the bonds with no way to resolve the rest of the problems and all they have done is shut off access to any new borrowing, not addressing root causes.

Yes, I see what you mean.

So, lets assume that they are not allowed to declare bankruptcy. First they default on the Bonds, then they have to start defaulting on everything else, which is even harder to pay without access to borrowing, it's strictly a cash-in, cash-out basis.

So, then the pensions go unpaid. That is clearly a lot of hardship for people relying on them ..

It's hard for me to see this ending anyway except a bail-out. "Evil Republicans want to let poor old Pureto-Rican pensioners starve", that always works with the squishy cusckservatives.

So, maybe the bankruptcy is the way to go?